Time- Dated Material GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW California Regulatory Notice Register REGISTER 2022, NUMBER 38-Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW SEPTEMBER 23, 2022 PROPOSED ACTION ON REGULATIONS TITLE 2. FAIR POLITICAL PRACTICES COMMISSION Conflict–of–Interest Codes — Notice File Number Z2022–0914–01 ....................................... 1083 AMENDMENT MULTI–COUNTY: Access Services Beaumont–Cherry Valley Water District Westlands Water District TITLE 5.

STUDENT AID COMMISSION Education — Notice File Number Z2022–0912–02 ..................................................... 1084 TITLE 10. BUREAU OF REAL ESTATE APPRAISERS Minimum Basic and Continuing Education Requirements — Notice File Number Z2022–0912–06 ............... 1086 TITLE 13. AIR RESOURCES BOARD In–Use Locomotive Regulation — Notice File Number Z2022–0906–10 .................................... 1089 TITLE 13. AIR RESOURCES BOARD In–Use Off–Road Diesel–Fueled Fleets Regulation — Notice File Number Z2022–0906–13 .................... 1100 TITLE 14.

FISH AND GAME COMMISSION 2023–24 Federal Groundfish and Associated Species — Notice File Number Z2022–0913–03 ................... 1111 TITLE 16. CALIFORNIA ARCHITECTS BOARD Fees — Notice File Number Z2022–0912–04 ......................................................... 1115 TITLE 16. LANDSCAPE ARCHITECTS TECHNICAL COMMITTEE Issuance and Appeal of Citations — Notice File Number Z2022–0912–05 .................................. 1118 TITLE 16. CEMETERY AND FUNERAL BUREAU Preneed Funeral Arrangements: Unclaimed Property — Notice File Number Z2022–0912–03 .................. 1120 (Continued on next page)

TITLE 21. DEPARTMENT OF TRANSPORTATION Conflict–of–Interest Code — Notice File Number Z2022–0907–01 ........................................ 1125 TITLE 22.

EMERGENCY MEDICAL SERVICES AUTHORITY Paramedic Fees — Notice File Number Z2022–0913–02 ................................................ 1126 GENERAL PUBLIC INTEREST DELTA STEWARDSHIP COUNCIL Notice of Extension of Written Comment Period and Rescheduled Hearing for Proposed Rulemaking on Prioritization of State Investments in Delta Levees and Risk Reduction, Originally Published on August 26, 2022, Notice Register 2022, Number 34–Z, OAL Notice File Number Z2022–0816–07 ............................................... 1128 DEPARTMENT OF SOCIAL SERVICES Comment Period for the Updated State Plan for the Temporary Assistance to Needy Families (TANF) Program ........................................................................ 1130

SUMMARY OF REGULATORY ACTIONS Regulations filed with Secretary of State ............................................................. 1130 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)].

It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULATORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at https://oal.ca.gov .

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1083 PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2.

FAIR POLITICAL PRACTICES COMMISSION NOTICE IS HEREBY GIVEN that the Fair Polit - ical Practices Commission, pursuant to the authority vested in it by Sections 82011, 87303, and 87304 of the Government Code to review proposed conflict–of– interest codes, will review the proposed/amended conflict–of–interest codes of the following: CONFLICT–OF–INTEREST CODES AMENDMENT MULTI–COUNTY: Access Services Beaumont–Cherry Valley Water District Westlands Water District A written comment period has been established commencing on September 23, 2022 and closing on November 7, 2022.

Written comments should be di - rected to the Fair Political Practices Commission, At - tention Daniel Vo, 1102 Q Street, Suite 3000, Sacra - mento, California 95811. At the end of the 45–day comment period, the pro - posed conflict–of–interest codes will be submitted to the Commission’s Executive Director for his review, unless any interested person or his or her duly autho - rized representative requests, no later than 15 days pri- or to the close of the written comment period, a public hearing before the full Commission.

If a public hear - ing is requested, the proposed codes will be submitted to the Commission for review. The Executive Director of the Commission will review the above–referenced conflict–of–interest codes, proposed pursuant to Government Code Sec - tion 87300, which designate, pursuant to Government Code

Section 87302, employees who must disclose certain investments, interests in real property and income. The Executive Director of the Commission, upon his or its own motion or at the request of any interested person, will approve, or revise and approve, or return the proposed codes to the agency for revision and re– submission within 60 days without further notice. Any interested person may present statements, ar - guments or comments, in writing to the Executive Director of the Commission, relative to review of the proposed conflict–of–interest codes.

Any written comments must be received no later than November 7, 2022. If a public hearing is to be held, oral comments may be presented to the Commission at the hearing. COST TO LOCAL AGENCIES There shall be no reimbursement for any new or in- creased costs to local government which may result from compliance with these codes because these are not new programs mandated on local agencies by the codes since the requirements described herein were mandated by the Political Reform Act of 1974. There- fore, they are not “costs mandated by the state” as de- fined in Government Code

Section 17514. EFFECT ON HOUSING COSTS AND BUSINESSES Compliance with the codes has no potential effect on housing costs or on private persons, businesses or small businesses. AUTHORITY Government Code Sections 82011, 87303 and 87304 provide that the Fair Political Practices Commission as the code–reviewing body for the above conflict–of– interest codes shall approve codes as submitted, revise the proposed code and approve it as revised, or return the proposed code for revision and re–submission.

REFERENCE Government Code Sections 87300 and 87306 pro - vide that agencies shall adopt and promulgate conflict– of–interest codes pursuant to the Political Reform Act and amend their codes when change is necessitated by changed circumstances. CONTACT Any inquiries concerning the proposed conflict– of–interest codes should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sacramento, California 95811, telephone (916) 322–5660.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1084 AVAILABILITY OF PROPOSED CONFLICT–OF–INTEREST CODES Copies of the proposed conflict–of–interest codes may be obtained from the Commission offices or the respective agency. Requests for copies from the Com- mission should be made to Daniel Vo, Fair Political Practices Commission, 1102 Q Street, Suite 3000, Sac- ramento, California 95811, telephone (916) 322–5660. TITLE 5. STUDENT AID COMMISSION AMEND

ARTICLE 2, SECTIONS 30023 AND 30026 NOTICE IS HEREBY GIVEN that the California Student Aid Commission (Commission) proposes to amend the proposed regulations described below after considering all comments, objections, or recommen - dations regarding the proposed action. PUBLIC HEARING A public hearing regarding this proposal is current - ly not scheduled. However, any interested person or duly authorized representative may request, no later than 15 days before the close of the written comment period that a public hearing be scheduled.

WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS Notice is also given that any interested person, or their authorized representative, may submit written comments relevant to the proposed regulatory action to: California Student Aid Commission Attention: Synequeen Alasa–as, Legal Services P.O. Box 419026 Rancho Cordova, CA 95741 Comments may also be submitted by facsimile (FAX) at (916) 464–6411 or by e–mail to Rulemaking@ csac.ca.gov. The public comment period for this reg - ulatory action will begin on Friday, September 23, 2022. Comments must be submitted by Monday, No- vember 7, 2022, to be considered.

AUTHORITY AND REFERENCE Pursuant to the authority vested by

Section 69433.7 of the Education Code, the proposed regulations im - plement, interpret and make specific

Section 69435.5 of the Education Code. In addition,

Section 69432.9(c) (2)(B)(iii)(

I) requires the Commission to promulgate regulations that address a grace period for submitting a grade point average or a test score in lieu of a grade point average. The California Community College Ex- panded Entitlement Program is governed by both of these provisions, and the Commission is considering changes to Division 4 of Title 5 of the California Code of Regulations to establish a deadline for when the Commission to receive a grade point average s for the California Community College Expanded Entitlement Program under Education Code

Section 69435.5. INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Education Code

Section 69435.5 was added by Assembly Bill 132 (AB 132),

Chapter 144, Statutes of 2021, and amended in 2022 by Assembly Bill 183 (Chapter 54, Statutes of 2022. One of the stated purposes of AB 132 was to: “establish a California Community College Expanded Entitlement Award for students who were not awarded a Cal Grant A or B award at the time of the student’s high school gradu - ation but who will be enrolled at a California commu- nity college during the award year and who meet all of the criteria, as specified.” With respect to this goal, Education Code

Section 69435.5(c)(1) now provides that: The commission shall use the standardized student financial aid application described in

Section 69432.9. Education Code Sec - tion 69432.9(

a) requires: A Cal Grant applicant shall submit a complete official financial aid application pursuant to

Section 69433 and applicable regulations adopted by the commission. Included within the stat - utory requirements is that an applicant must include information related to their grade point average. Education Code

section 69432.9(c)(2)(B)(iii) pro - vides: the Commission shall adopt regulations that establish a grace period for receipt of the grade point average and any appropriate corrections, and that set forth the circumstances under which a student may submit a specified test score designated by the Com - mission, by regulation, in lieu of submitting a qualify- ing grade point average. The proposed regulatory amendments were de - veloped to satisfy these provisions of the Education Code as they apply to the newly established California Community College Expanded Entitlement Program pursuant to Education Code

Section 69435.5. Objectives and Benefits of the Proposed Regulation The proposed regulatory amendments will support the effective administration of the newly established California Community College Expanded Entitlement Program by the Commission on behalf of student ap - plicants. The proposed regulations will add program clarity and specificity concerning the corrective ap -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1085 plication grace period, the conditions under which in–lieu test scores may be submitted by program ap - plicants, and the method to reestablish a grade point average. Efficient administration of this program should enable the Commission to increase the number of entitlement awards made available to Community College students, in a timely manner, to support stu - dent educational goals. There are no expected benefits to worker safety, and public health and safety resulting from this rulemaking.

Evaluation of Inconsistency or Incompatibility with Existing State Regulations After conducting a review of the related State reg - ulations in this area, the Commission has determined that other regulations exist with respect to high school students, who may qualify for financial aid under the existing Cal Grant Program. However, the Cal Grant program applies to recent high school graduates and is not available to older or returning students who may be entering a Community College.

The proposed reg - ulations establishing the California Community Enti - tlement Program would extend CAL Grant financial aid opportunity to such students. Therefore, the pro - posed regulations are neither inconsistent nor incom - patible with existing State regulations. DISCLOSURES REGARDING THE PROPOSED ACTION The Commission has made the following initial determinations: Mandate on Local Agencies and School Districts: None. Fiscal Impact Estimates: This proposal does not impose costs on any local agency or school district for which reimbursement would be required pursuant to

Part 7 (commencing with

Section 17500) of Division 4 of the Government Code. This proposal does not impose other nondiscre- tionary costs or savings on local agencies. This pro - posal does not result in any cost or savings in federal funding to the state. With respect to potential cost or savings to State agencies, the California Student Aid Commission may incur minor absorbable costs rela - tive to preparing the proposed regulations. Housing Cost: None.

Cost Impact on Representative Private Person or Business: The Commission is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. Other Business Impacts: The Commission has determined the proposed reg - ulatory action would have no significant statewide ad- verse economic impact directly affecting business, in- cluding the ability of California businesses to compete with businesses in other states. The proposal would impose no costs upon business.

The proposal does not affect small businesses as defined by California Gov - ernment Code

Section 11342.610. This proposal would not affect private sector or small business as defined by California Government Code

Section 11342.610. Cost or Savings in Federal Funding to the State: None. Results of the Economic Impact Analysis: The proposed regulations would clarify program provisions and application requirements for the Cal - ifornia Community College Expanded Entitlement Program. Participating in this educational grant fund - ing program is a voluntary option available to eligible students. As such, the proposed regulations place no new or substantial requirements on businesses, indi - viduals, or government agencies within California.

The regulatory amendments are not expected to create or eliminate any jobs within the state. The reg - ulation is not expected to create new businesses or eliminate existing businesses within the state or cause an expansion to businesses currently doing business within the state. Therefore, the proposed regulations have no potential for adverse economic or fiscal im - pact. Furthermore, there is no significant statewide adverse economic impact directly affecting business - es, including California businesses’ ability to compete with businesses in other states or on representative private persons.

The benefits of this regulation, as discussed above, would be to improve the efficient administration of this program by the Commission on behalf of student applicants. This should enable more students to take advantage of this source of educational grant funding in support of their educational goals. The regulation is not expected to directly impact California resi - dents’ health and welfare, worker safety, or the state’s environment. FEDERAL MANDATE There are no comparable provisions of federal law related to this proposal.

The regulation would only ap- ply in California and specifically to establishing the California Community College Expanded Entitlement Program. The regulations would neither affect nor conflict with any federal regulations or federal educa- tion programs. CONSIDERATION OF ALTERNATIVES The Commission must determine that no reasonable alternative it considered, or that has otherwise been identified and brought to its attention, would be more

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1086 effective in carrying out the purpose for which the ac- tion is proposed, would be as effective and less bur - densome to affected private persons than the proposed action, or would be more cost–effective to affected pri- vate persons and equally effective in implementing the statutory policy or other provision of law. The Com - mission invites interested parties to submit statements or arguments with respect to alternatives to the pro - posed regulatory action during the written comment period or at the public hearing.

CONTACT PERSONS Inquiries concerning the proposed adoption of the regulations and written comments may be directed to: Synequeen Alasa–as California Student Aid Commission P.O. Box 419026, Rancho Cordova, CA 95741 Telephone: (916) 464–6411 Fax: (916) 464–6411 Email: Rulemaking@csac.ca.gov The back–up contact person for these inquiries is: Gary Collord California Student Aid Commission P.O.

Box 419026, Rancho Cordova, CA 95741 Telephone: (916) 347–0632 Fax: (916) 464–8033 Email: Rulemaking@csac.ca.gov A VAILABILITY OF THE STATEMENT OF REASONS, TEXT OF PROPOSED REGULATIONS, AND RULEMAKING FILE The Commission will have the entire rulemaking file available for inspection and copying throughout the rulemaking process at its office listed at the ad - dress above.

As of the date this notice is published, the rulemaking file consists of this notice, the proposed text of regulations, the initial statement of reasons, an economic and fiscal analysis, and other reference information upon which the proposed rulemaking is based. Copies may be obtained by making a written request to Synequeen Alasa–as. These documents may also be viewed and downloaded from the Commission’s Web site at https://www.csac.ca.gov/proposed–regulations– rulemaking–documents .

AVAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments received, the Commission may adopt the proposed regulations substantially as described in this notice. If the Commission makes modifications which are suf - ficiently related to the originally proposed text, it will make the modified text, with changes clearly indicat - ed, available to the public for at least 15 days before the Board adopts the regulations as revised. Please send requests for copies of any modified regulations to the attention of Synequeen Alasa–as at the above ad - dress.

The Commission will accept written comments on the modified regulations for 15 days after the date on which they are made available. A VAILABILITY OF THE FINAL STATEMENT OF REASONS Upon its completion, copies of the final statement of reasons may be obtained by making a written request to Synequeen Alasa–as at the above address. WEBSITE ACCESS Materials regarding this proposal can be found at https://www.csac.ca.gov/proposed–regulations– rulemaking–documents . TITLE 10.

BUREAU OF REAL ESTATE APPRAISERS MINIMUM BASIC AND CONTINUING EDUCATION REQUIREMENTS NOTICE IS HEREBY GIVEN that the Bureau of Real Estate Appraisers (hereafter Bureau or BREA) is proposing to take the action described in the Infor - mative Digest below, after considering all comments, objections, and recommendations regarding the pro - posed action. PUBLIC HEARING The Bureau has not scheduled a public hearing on this proposed action.

However, the Bureau will hold a hearing if it receives a written request for a public hearing from any interested person, or the interested person’s authorized representative, no later than 15 days prior to the close of the written comment period. A hearing may be requested by making such request in writing addressed to the individuals listed under “Contact Person” in this notice.

WRITTEN COMMENT PERIOD Written comments relevant to the action proposed, including those sent by mail, facsimile, or e–mail to the addresses listed under “Contact Person” in this Notice, must be received by the Bureau at its office no later than 5:00 pm on Tuesday, November 8,

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1087 2022, or must be received by the Bureau at the hear - ing, should one be scheduled. AUTHORITY AND REFERENCE Pursuant to the authority vested by sections 11313, 11314, 11340, 11360, and 11361 of the Business and Professions Code (BPC) and to implement, interpret, or make specific BPC sections 11340, 11360, 11361, and 11424, the Bureau is considering amending sec - tions 3500, 3543, and 3568 of, and adding

section 3542 to, title 10 of the California Code of Regulations (CCR). INFORMATIVE DIGEST/POLICY STATEMENT OVERVIEW Existing federal law, Title XI of the Financial In - stitutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) (Public Law 101–73), established the Appraiser Foundation. The Appraiser Qualifications Board is an independent board of the Appraiser Foun- dation and establishes the minimum education, expe - rience, and examination requirements for appraisers to qualify for state licensure or certification. Assembly Bill 948 (Holden)

Chapter 352, Stats. 2021 (AB 948), prohibits a licensee from basing their appraisal of the market value of a property on the basis of race, color, religion, gender, gender expression, age, national origin, disability, marital status, source of in - come, sexual orientation, familial status, employment status, or military status of either the present or pro - spective owners or occupants of the subject property, or of the present owners or occupants of the properties in the vicinity of the subject property, or on any oth - er basis prohibited by the federal Fair Housing Act.

It requires the Bureau to adopt regulations to require, beginning January 1, 2023, an applicant to complete at least one hour of instruction in cultural competency.

It further enacts continuing education (CE) require - ments in order to renew a license, beginning on or af - ter January 1, 2023, at least two hours of elimination of bias training and at least one hour of instruction in cultural competency every four years. (It made addi - tional changes not relevant here.) Business and Professions Code sections 11314 and 11340 provide the Bureau broad rulemaking author - ity to establish the education requirements necessary for initial licensure.

Sections 11360 and 11361 provide the Bureau with rulemaking authority to establish the CE requirements necessary for licensure renewal. The Bureau proposes to separate those different education requirements, which are currently in one section, for greater clarity and easier reading. In addition, the Bu - reau proposes to specify the new requirements for an applicant for licensure to receive education in cultur - al competency in order to better serve a diverse Cali - fornia.

It also proposes to specify the new continuing education requirements for renewal of a license in cul- tural competency and training in the elimination of bias to better serve the diverse population in Califor - nia and ensure more fair appraisals. Anticipated Benefits of Proposal The proposal will implement AB 948 by specifying the requirements for instruction in cultural competen - cy for applicants as a requirement of their basic edu - cation for licensure, and CE in cultural competency and training in the elimination of bias for licensees as a condition of renewal.

This will allow applicants and licensees to understand their obligations and inform providers as to the minimum elements of the respec - tive curriculums in order to create courses that will meet the requirements. By separating out the basic education requirements from the CE requirements, prospective and current licensees will be able to dis - cern more easily which requirements apply to them.

The proposed regulations aim to benefit the health and welfare of California’s residents through the elimina - tion of bias and cultural competency to better serve the diverse cross–culture population in California and ensure equal treatment of all and fair appraisals. The regulations also clarify the Bureau’s and licensees’ re- quirements established with Assembly Bill 948.

Consistency and Compatibility with Existing State Regulations During the process of developing this regulatory proposal, the Bureau has conducted a search of any similar regulations on these topics and has concluded that these regulations are neither inconsistent, nor in - compatible with, existing state regulations.

DISCLOSURES REGARDING THIS PROPOSED ACTION The Bureau has made the following initial determinations: FISCAL IMPACT ESTIMATES Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/Sav - ings in Federal Funding to the State : The proposed regulations do not result in a fiscal impact to the state. The amendments clarify and specify basic educational and continuing education requirements, but do not in - crease workload or costs to the state. The regulations do not result in costs or savings in federal funding to the state. Nondiscretionary Costs/Savings to Local Agencies: None.

Local Mandate: None.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1088 Cost to any Local Agency or School District for which Government Code Sections 17500–17630 Require Reimbursement: None. Significant Statewide Adverse Economic Impact Directly Affecting Business, Including Ability to Compete The Bureau has made the initial determination that the proposed regulatory action would have no signif - icant statewide adverse economic impact directly af - fecting business, including the ability of California businesses to compete with businesses in other states. No business is required to develop new coursework.

RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS: BUSINESS IMPACT ESTIMATES Impact on Jobs/Businesses The Bureau has determined that this regulatory proposal will not impact the creation of jobs or new businesses, the elimination of jobs or existing busi - nesses, or the expansion of businesses in the State of California. Benefits of Regulation The proposed regulations aim to benefit the health and welfare of California’s residents through the elim- ination of bias and cultural competency to better serve the diverse cross–culture population in California and ensure equal treatment of all and fair appraisals.

The regulations also clarify the Bureau’s and licensees’ re- quirements established with Assembly Bill 948. The proposed regulations are not expected to affect worker safety or the state’s environment. Business Reporting Requirements The regulatory action does not require businesses to file a report with the Bureau. Effect on Small Business The Bureau has determined that the proposed reg - ulations will not affect small businesses.

While many licensees are small businesses, the amendments clar - ify and specify basic educational and continuing edu - cation requirements, but do not increase costs to small businesses in the state. Cost Impact on Representative Private Person or Business The Bureau is not aware of any cost impacts that a representative private person or business would necessarily incur in reasonable compliance with the proposed action. The amendments clarify and specify basic educational and continuing education require - ments, but do not increase costs to individuals in the state. Significant Effect on Housing Costs: None.

CONSIDERATION OF ALTERNATIVES In accordance with Government Code

section 11346.5, subdivision (a)(13), the Bureau must deter - mine that no reasonable alternative it considered to the regulation or that has otherwise been identified and brought to its attention would be more effective in car- rying out the purpose for which the action is proposed; as effective and less burdensome to affected private persons than the proposal described in this Notice; or would be more cost–effective to affected private per - sons and equally effective in implementing the statu - tory policy or other provision of law.

Any interested person may submit comments to the Bureau in writing relevant to the above determina - tions at 3075 Prospect Park Drive, Suite 190, Rancho Cordova, CA 95670, or via e–mail to the Contact Per- son listed below. A VAILABILITY OF STATEMENT OF REASONS AND RULEMAKING FILE The Bureau has compiled a record for this regulato- ry action, which includes the Initial Statement of Rea- sons (ISR), proposed regulatory text, and all the infor- mation on which this proposal is based.

This material is contained in the rulemaking file and is available for public inspection upon request to the contact persons named in this notice. TEXT OF PROPOSAL Copies of the exact language of the proposed regu - lations, and any document incorporated by reference, and of the initial statement of reasons, and all of the information upon which the proposal is based, may be obtained upon request from the Bureau at 3075 Prospect Park Drive, Suite 190, Rancho Cordova, CA 95670.

AVAILABILITY OF CHANGED OR MODIFIED TEXT After considering all timely and relevant comments, the Bureau, upon its own review or at the request of any interested party, may thereafter adopt the propos - als substantially as described below or may modify such proposals if such modifications are sufficient - ly related to the original text.

With the exception of technical or grammatical changes, the full text of any modified proposal, with the modifications clearly in - dicated, will be available for review and written com - ment for 15 days prior to its adoption from the person designated in this Notice as the Contact Person and will be mailed to those persons who submit written or oral testimony related to this proposal or who have requested notification of any changes to the proposal.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1089 A VAILABILITY AND LOCATION OF THE FINAL STATEMENT OF REASONS AND RULEMAKING FILE All the information upon which the proposed reg - ulations are based is contained in the rulemaking file which is available for public inspection by contacting the person named below. You may obtain a copy of the Final Statement of Reasons once it has been prepared by making a writ - ten request to the Contact Person named below or by accessing the website listed below.

CONTACT PERSONS Inquiries or comments concerning the proposed rulemaking action may be addressed to: Name: Loretta Dillon Address: Bureau of Real Estate Appraisers 3075 Prospect Park Drive, Suite 190 Rancho Cordova, CA 95670 Telephone Number: (916) 610–9879 Email: Loretta.Dillon@brea.ca.gov The backup contact person is: Name: Mary Ann Lopez Address: Bureau of Real Estate Appraisers 3075 Prospect Park Drive, Suite 190 Rancho Cordova, CA 95670 Telephone Number: (916) 610–9891 Email: Maryann.Lopez@brea.ca.gov A VAILABILITY OF DOCUMENTS ON THE INTERNET Copies of this Notice of Proposed Actions, the Initial Statement of Reasons, and the text of the regulations, as well as the Final Statement of Reasons when com - pleted and text modified from the original proposed text, if any, can be accessed through the Bureau’s website at https://www.brea.ca.gov/html/Rulemaking. html.

TITLE 13. AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED IN–USE LOCOMOTIVE REGULATION The California Air Resources Board (CARB or Board) will conduct a public hearing at the date and time noted below to consider the proposed In–Use Lo- comotive Regulation. Date: November 17, 2022 Time: 9:00 a.m. In–Person Location: California Air Resources Board Byron Sher Auditorium 1001 I Street, Sacramento, California 95814 Remote Option: Zoom This public meeting may continue at 8:30 a.m., on November 18, 2022.

Please consult the public agenda, which will be posted ten days before the November 17, 2022, Board Meeting, for important details, including, but not limited to, the day on which this item will be considered, how to participate via Zoom, and any ap - propriate direction regarding a possible remote–only Board Meeting if needed. WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS In accordance with the Administrative Procedure Act, interested members of the public may present comments orally or in writing during the hearing and may provide comments by postal mail or by electronic submittal before the hearing.

The public comment pe- riod for this regulatory action will begin on September 23, 2022. Written comments not submitted during the hearing must be submitted on or after September 23, 2022, and received no later than November 7, 2022. Comments submitted outside that comment period are considered untimely. CARB may, but is not required to, respond to untimely comments, including those raising significant environmental issues. The Board also encourages members of the public to bring to the attention of staff in advance of the hearing any sugges- tions for modification of the proposed regulatory ac - tion.

Comments submitted in advance of the hearing must be addressed to one of the following: Postal mail: Clerks’ Office, California Air Resources Board 1001 I Street, Sacramento, California 95814 Electronic submittal: https://www.arb.ca.gov/lispub/comm/bclist.php Please note that under the California Public Records Act (Gov. Code, § 6250 et seq.), your written and oral comments, attachments, and associated contact infor - mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request.

Additionally, the Board requests but does not re - quire that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1090 AUTHORITY AND REFERENCE This regulatory action is proposed under the au- thority granted in California Health and Safety Code, sections 38597, 39600, 39601, 39658, 39659, 39666, 39667, 39674, 39675, 41511, 42400, 42400.1, 42400.2, 42400.3.5, 42402, 42402.2, 42410, 43008.6, 43013, 43016, 43018, and 43019.1. This action is proposed to implement, interpret, and make specific sections 39650, 39659, 41511, 43013, and 43018, Health and Safety Code. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (Gov.

Code, § 11346.5, subdivision (a)(3)) Sections Affected: Proposed adoption to California Code of Regula- tions, title 13,

section 2478. Background and Effect of the Proposed Regulatory Action: Staff are proposing the In–Use Locomotive Regu- lation (Proposed Regulation) to achieve emission re - ductions from diesel–powered locomotives operating in California. Emission reductions from locomotives are needed to better protect communities from near– source pollution impacts, contribute to meeting the current health–based ambient air quality standards, and further California’s climate goals.

Background In 2020, California’s locomotive sector was respon- sible for ten percent of statewide oxides of nitrogen (NOx) emissions from mobile sources and are project- ed to grow to over 15 percent in 2035 without regula - tion. 1 While most other mobile sectors are expected to significantly reduce emissions by 2035 as cleaner technologies are adopted, the locomotive sector’s rel - ative contribution is expected to increase without the Proposed Regulation.

The Proposed Regulation will reduce emissions from locomotives operating in California by requir - ing locomotive operators to fund a spending account based on the public health costs to Californians from locomotive emissions and activity levels. Locomotive operators may use funds held in the spending account to purchase cleaner locomotive technologies. The Pro- posed Regulation would prohibit locomotive with en - gine build dates 23 years and older from operating in California starting in 2030.

The Proposed Regulation, starting in 2030, also requires that switch, industrial and passenger locomotives with original engine build dates of 2030 or later operate in a zero emission (ZE) 1 CARB, Appendix G, CARB’s 2022 In–Use Locomotive Emis - sion Inventory: Regulation Proposal and Scenarios. configuration in California. Additionally, in 2035, line haul locomotives with original engine build dates of 2035 or later will need to operate in a ZE configura - tion in California.

The Proposed Regulation will achieve emission reductions that will minimize health risk associated with exposure to toxic and criteria pollutants, help meet federal air quality standards, and support Cali - fornia’s greenhouse gas (GHG) reduction goals.

The Proposed Regulation would also increase the use of ZE technology in the off–road sector and support the goals of Executive Order N–79–20. 2,3 Effects of the Proposed Regulation The Proposed Regulation is designed to achieve public health, air quality, and climate benefits by re - quiring the transition of the oldest diesel–powered locomotives to cleaner technologies including ZE technology. Key elements of the Proposed Regulation include the following: 1. Spending Account.

F o r e a c h l o c o m o t i v e o p e r a t- ed in California, locomotive operators will de - posit funds into a spending account annually. The amount deposited in the account is calcu - lated by using the locomotive’s annual usage in megawatt hours (MWh) or per gallon of fuel and the locomotive’s emission factors. Emission fac - tors reflect estimates of the health cost burden on Californians due to these locomotive emissions. Funds in the Spending Account may only be used for: a.

T he purchase, lease, or rental of Tier 4 or cleaner locomotives, or for the remanufac - ture or repower to Tier 4 or cleaner locomo- tive until January 1, 2030. b. T he purchase, lease, or rental of ZE loco - motives, ZE capable locomotives, ZE rail equipment, or to repower to ZE locomotives or ZE capable locomotives. A ZE capable locomotive is one that can be operated in a zero emission capacity when in California. c. T he purchase of ZE infrastructure intended to support ZE locomotives, ZE capable loco- motives or ZE rail equipment. d. T he pilot or demonstration of ZE locomo - tives or ZE rail equipment. 2.

In–Use Operational Requirements. Starting January 1, 2030, only locomotives with original engine build dates less than 23 years may operate in California. Additionally, on January 1, 2030, 2 Executive Order N–79–20, State of California Executive Order signed by Governor Gavin Newsom, September 23, 2020. (weblink: https://www.gov.ca.gov/wp–content/uploads/ 2020/09/9.23.20–EO–N–79–20–Climate.pdf ). 3 Executive Order N– 79–20 set a goal for 1 00 percent ZE off– road vehicles and equipment by 2035.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1091 all switch and passenger and industrial locomo - tives with an original engine build date of 2030 or later must operate in a ZE configuration in California. Starting January 1, 2035, all line haul locomotives with an original engine build date of 2035 or later must operate in a ZE configura - tion in California.

As part of these requirements, in 2027 and 2032, staff will assess the progress made in ZE technologies for use with switch, in - dustrial, passenger and freight line haul locomo - tives, as well as the status of infrastructure im - provements that may be needed to support ZE and ZE capable locomotives. 3. Idling Requirements. The Proposed Regulation specifies that locomotives cannot idle in California for more than 30 minutes before the engine must be shut down. Certain exemptions permit idling in excess of 30 minutes consistent with those found in 40 C.F.R.

Part 1033. 4. Recordkeeping and Reporting. The Proposed Regulation requires operators to submit annual reports on locomotive operations by California Air District for each locomotive operated in the state.

OBJECTIVES AND BENEFITS OF THE PROPOSED REGULATORY ACTION Objectives The main objectives of the Proposed Regulation are to: (1) achieve fine particulate matter (PM2.5), NOx, and GHG emission reductions needed to protect com- munities from near–source pollution impacts, contrib- ute toward meeting the current health based ambient air quality standards across California, and contribute toward achieving the state’s climate goals; (2) transi - tion diesel–powered locomotives to ZE technology, as directed by Executive Order N–79–20, which set a goal for 100 percent ZE off–road vehicles and equipment by 2035; (3) address multiple state policies and plans directing CARB to achieve additional diesel emis - sion reductions; and (4) collect payment from diesel– powered locomotive operators to cover CARB’s rea - sonable costs associated with the implementation and enforcement of the Proposed Regulation, as allowed by Health and Safety Code sections 38597 and 43019.1.

Benefits The primary benefits of the Proposed Regulation are PM2.5, NOx, and GHG emission reductions from diesel–powered locomotives that operate in Califor - nia. Staff estimates that cumulatively, from 2024 to 2050, the Proposed Regulation will reduce statewide emissions by approximately 7,450 tons of PM2.5, 389,600 tons of NOx, and 21.9 million metric tonnes of GHGs, relative to the baseline.

These emission re - ductions will benefit California residents by reducing cancer risk to individual residents and off–site workers near facilities where locomotives operate, including those located in and near disadvantaged communities; improving air quality and resulting ozone exposure from reductions in NOx; providing GHG emission reductions needed to combat climate change; and re - ducing non–cancer health impacts such as premature deaths, hospital visits for cardiovascular and respira - tory illnesses, and emergency room visits for asthma, especially in sensitive receptors including children, the elderly, and people with chronic heart or lung dis - ease.

The total statewide valuation of avoided adverse health outcomes as a result of the Proposed Regula - tion from 2024 to 2050 is approximately $31.9 billion. Emission reductions will also reduce occupational ex- posure and benefit on–site workers, including, but not limited to locomotive operators and other individuals who work at facilities where locomotives operate. The Proposed Regulation will provide an opportu - nity to increase ZE technology in the off–road locomo- tive sector.

As more ZE and ZE capable locomotives are operated in California as a result of the Proposed Regulation, industry acceptance of advanced technol - ogies will improve. The state of ZE locomotive tech - nologies will progress, starting with shorter ranged lo- comotives such as switchers, and expand into extend - ed range locomotives such as line haul locomotives.

Operators may choose to retrofit existing locomo - tives to be able to operate in a ZE capacity some (or all) of the time (referred to here as a ZE capable lo - comotive) or may instead purchase new or used ZE locomotives as they become commercially available. Retrofitting existing locomotives may benefit various businesses in the ZE locomotive supply chain, includ- ing those involved in battery and fuel cell technolo - gy throughout the state.

Purchases of ZE locomotives may benefit ZE locomotive manufacturers, as well as various businesses in the ZE locomotive supply chain, including those involved in battery and fuel cell tech - nology throughout the state. Supporting infrastructure installations will provide opportunities for design, engineering, construction, and project management firms to design new and expanded infrastructure, as well as benefit suppliers, equipment installers, and electricians.

The expansion of electric charging in - frastructure will also increase the amount of electric - ity supplied by utility providers and help the state’s investor–owned utilities meet the goals of Senate Bill 350 (De León, Stats. 2015,

chapter 547), which requires the state’s investor–owned utilities to devel - op programs to accelerate widespread transportation electrification with goals to reduce dependence on petroleum, increase the uptake of ZE vehicles and equipment, help meet air quality standards, and re - duce GHGs.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1092 Lastly, the Proposed Regulation will result in noise reduction benefits. Diesel–powered locomotives can produce a substantial amount of noise, which also results in adverse health impacts. This is of concern when locomotives operate in and near places where people live, work, and play. Staff have received sever- al noise complaints regarding locomotive activity near schools, hospitals, elder care facilities, and residential neighborhoods.

The Proposed Regulation will transi - tion diesel locomotives to ZE technology, which can produce little to no noise. The Proposed Regulation will eventually lead to the elimination of use of die - sel–powered locomotives and reduce noise levels. Public Process To ensure an open and transparent rulemaking, staff have engaged in an extensive public process since development of the Proposed Regulation began in 2019.

Staff conducted four public workshops to dis - cuss regulatory concepts, methodology and data used to develop the proposed regulatory concepts, infra - structure considerations, compliance and enforcement mechanisms, as well as solicit stakeholder feedback.

Staff posted information regarding these workshops and any associated materials on the CARB locomo - tive webpage 4 and distributed notice of these meetings through several public list serves that include over 129,600 recipients. 5 As of July 2022, staff have conducted more than 250 informal meetings, phone calls, and site visits with a broad group of stakeholders to discuss the Proposed Regulation and gather input and information.

This includes members of impacted communities, envi - ronmental justice advocates, air districts, locomotive owners and operators, trade associations, locomotive manufacturers and other interested parties. A detailed

summary of all stakeholder outreach activities is in - cluded in

section XI of the Initial Statement of Rea - sons (ISOR). 4 California Air Resources Board, Reducing Rail Emissions in California, accessed August 2, 2022. (weblink: https://ww2. arb.ca.gov/our–work/programs/reducing–rail–emissions– california.) 5 Number of subscribers for the following CARB lists as of June 29, 2022, AB32 Public Health Workgroup; Cargo Handling Equipment Regulatory Activities; Climate Change; Environmen - tal Justice ChERRP, Commerce; Environmental Justice Stake - holders Group; Port and Rail Plan; Goods Movement Emission Reduction Program; Harbor Craft; Harbor Communities Moni- toring; Tractor–Trailer GHG Regulation; Locomotive Emission Reduction Program; Environmental Justice ChERRP, Mira Loma; Truck and Bus Regulation; Port Truck; Railyard Emission Reduction Program; Reduction of GHG Emissions from Refrig - erated Shipping Containers; Sustainable Freight Transport Initia - tive; Shore Power for Ocean Going Vessels; State Implementation Plan; Transport Refrigeration Units; Vessel Speed Reduction for Ocean Going Ships; West Oakland Risk Assessment; Environ - mental Justice ChERRP, Wilmington.

COMPARABLE FEDERAL REGULATIONS The United States Environmental Protection Agen - cy (U.S. EPA) sets new locomotive emission standards under 40 C.F.R.

Part 1033. There are no comparable federal regulations which address the same issues as CARB’s Proposed Regulation, as the federal gov - ernment has not adopted regulations for in–use lo - comotives. Therefore, the Proposed Regulation does not conflict with nor duplicate any current federal regulations.

Section 209(

e) of the Clean Air Act prohibits states from adopting standards to control emissions from new locomotives or new engines used in locomotives (42 U.S.C. § 7 543(e)(1)(B).) The Proposed Regulation does not prescribe any emission standards for new locomotive engines but instead only requires that lo - comotive operators meet certain operational require - ments. While operators could meet these requirements by purchasing new locomotives that outperform cur - rent U.S. Environmental Protection Agency (U.S. EPA) emission standards, that is not necessary to meet the requirements of the Proposed Regulation.

In other words, the Proposed Regulation does not require the purchase of any new locomotive that would outper - form current U.S. EPA emission standards. AN EVALUATION OF INCONSISTENCY OR INCOMPATIBILITY WITH EXISTING STATE REGULATIONS (Gov. Code, § 11346.5, subdivision (a)(3)(D)) During the process of developing the proposed regulatory action, CARB conducted a search of any similar regulations on this topic and concluded these regulations are neither inconsistent nor incompatible with existing state regulations.

DISCLOSURE REGARDING THE PROPOSED REGULATION Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov. Code, § 11346.5, subdivisions (a)(5)&(6)): The determinations of the Board’s Executive Offi - cer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below.

Under Government Code sections 11346.5, subdi - vision (a)(5) and 11346.5, subdivision (a)(6), the Ex - ecutive Officer has determined that the proposed reg - ulatory action would create costs or savings to any state agency, would create costs or savings in federal funding to the state, would create costs or mandate to any local agency or school district, whether or not re -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1093 imbursable by the State under Government Code, title 2, division 4,

part 7 (commencing with

section 17500), or other nondiscretionary cost or savings to state or local agencies. Cost to any Local Agency or School District Requiring Reimbursement under

section 17500 et seq.: Pursuant to Government Code sections 11346.5, subdivision (a)(5) and 11346.5, subdivision (a)(6), the Proposed Regulation is a mandate that would create costs and cost–savings to local agencies and school districts. However, these costs to local agencies are not reimbursable by the state under Government Code, title 2, division 4,

part 7 (commencing with

section 17500) because costs associated with the Proposed Regulation apply generally to all locomotive oper - ators, including local agencies and school districts. Therefore, the Proposed Regulation does not consti - tute a “Program” imposing any unique requirements on local agencies or school districts as set forth in Government Code

section 17514. Cost or Savings for State Agencies: The estimated costs to CARB as a result of the Pro- posed Regulation include the direct and indirect labor costs for the additional positions needed to successful- ly implement and enforce the Proposed Regulation as described below and operational costs (e.g., surveil - lance systems and data storage). ● 0 .5 Air Resources Supervisor II position, 4.0 Air Pollution Specialist (APS) positions, 1.0 Staff Services Analyst position and 4.0 Air Resources Technician (ART) II positions in Fiscal Year 2023–2024.

Implementation duties include assisting locomotive operators with reporting and applicable registration, providing technical assistance, and issuing exemptions and waivers. Enforcement duties include conducting inspections and issuing and processing citations. The need for additional CARB staff is due to the addition of responsibilities for a new program. The Proposed Regulation will also have a fiscal im- pact on state government agencies that operate loco - motives.

Staff determined state government agencies own approximately 27 locomotives, or less than 1 per- cent of the total number of locomotives operating in California. Staff applied this percentage to the total equipment–related direct costs to estimate the costs incurred by state government locomotive operators. The Proposed Regulation will increase the number of ZE locomotives operating in California. Displacing diesel with electricity will decrease the total amount of diesel fuel dispensed in the state, resulting in a re - duction in diesel fuel tax revenue collected by state government.

For this analysis, staff used the combined state and local sales tax rate of 8.6 percent, which is a weighted average based on county–level output, with 3.94 percent 6 going towards state sales tax and 4.67 percent7 going towards local sales tax.

The Energy Resources Fee is a $0.0003/kilowatt– hour surcharge levied on consumers of electricity pur- chased from electrical utilities.8 The revenue collected is deposited into the Energy Resources Programs Ac - count of the General Fund which is used for ongoing energy programs and projects deemed appropriate by the Legislature, including but not limited to, activities of the California Energy Commission. The Proposed Regulation includes annual adminis - trative payments of $175 for each diesel–powered and ZE capable locomotive that is operated in California.

The proposed payment will result in revenue to the state to offset costs to CARB to implement and en - force the Proposed Regulation. Sales tax is levied in California to fund a variety of programs at the local and state levels. The Proposed Regulation will result in the sale of more expensive lo- comotives and infrastructure in California, which will result in a direct increase in sales tax revenue collect - ed by the state. However, overall, state sales tax rev - enue may increase less than the direct increase from locomotive and infrastructure sales if overall business spending does not increase.

Staff used a combined state and local sales tax rate of 8.6 percent, which is a weighted average based on county–level output, with 3.94 percent 9 going towards state sales tax and 4.67 percent10 going towards local sales tax. From 2023 to 2050, staff estimated the cost to state government due to the Proposed Regulation to be $470 million, from locomotives operated by state government; and approximately $68 million in costs to CARB.

State government will also see a direct in - crease in revenue from Energy Resources Fees, annu- al administrative payments and state sales tax of $228 million; as well as a decrease in sales tax from diesel fuel of $1.3 billion.

Staff estimated the net cost to state government to be $1.59 billion from 2023 to 2050. 6 C a l i f o r n i a D e p a r t m e n t o f T a x a n d F e e A d m i n i s t r a t i o n , D e- tailed Description of the Sales & Use Tax Rate, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sut– rates–description.htm ). 7 Calif ornia Department o f T ax and F ee A dministration, Cali- fornia City & County Sales & Use Tax Rates, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sales– use–tax–rates.htm ). 8 California Department of Tax and Fee Administration, 2020 Electrical Energy Surcharge Rate, December 2019. (weblink: https://www.cdtfa.ca.gov/formspubs/1725.pdf ). 9 C a l i f o r n i a D e p a r t m e n t o f T a x a n d F e e A d m i n i s t r a t i o n , D e- tailed Description of the Sales & Use Tax Rate, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sut– rates–description.htm ). 10 California Department of T ax and Fee Administration, Cali - fornia City & County Sales & Use Tax Rates, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sales– use–tax–rates.htm ).

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1094 CARB will seek authorization to use collected annu- al administrative payments to offset costs incurred to implement and enforce the Proposed Regulation. Other Non–Discretionary Costs or Savings on Local Agencies: The Proposed Regulation would cost local govern - ment agencies that own locomotives (e.g., Metrolink, Caltrain) approximately $515 million. Using the lo - comotive inventories created for the Proposed Regu- lation, staff calculated direct costs incurred by local government locomotive owners.

In attributing costs for local government, based on data from the Federal Transit Administration’s National Transit Summaries and Trends 2019, 11 staff allocated local governments a 46 percent share of capital costs and 69 percent of maintenance costs associated with the Proposed Reg - ulation. State funding provided 23 percent of capital costs, and federal funding providing 31 percent of cap- ital costs and maintenance costs. Several cities and counties in California levy a util - ity user tax on electricity usage. This tax varies from city to city and ranges from no tax to 11 percent.

For this analysis, staff used a value of 3.53 percent, repre- senting a population–weighted average. Since switch- er locomotives are modeled to transition to battery– electric locomotives and therefore increase the amount of electricity used, there would be an increase in the amount of utility user tax revenue collected by cities and counties. Line haul and passenger locomotives are assumed to be hydrogen fuel cell, and therefore do not affect utility user taxes. Off–road diesel locomotive use is exempt from on– road diesel taxes, but it does incur sales tax.

Displac - ing diesel with electricity or hydrogen would decrease the total amount of diesel fuel dispensed in the state, resulting in a reduction in tax revenue collected by local governments. For this analysis, staff used the combined state and local sales tax rate of 8.6 percent, which is a weighted average based on county–level output, with 3.94 percent going towards state sales tax and 4.67 percent going towards local sales tax. Sales tax is levied in California to fund a variety of programs at the local and state levels.

The Proposed Regulation will result in the sale of more expensive lo- comotives and infrastructure in California, which will result in a direct increase in sales tax revenue collect - ed by local governments. However, overall, local sales tax revenue may increase less than the direct increase from locomotive and infrastructure sales if over - all business spending does not increase.

Staff used a combined state and local sales tax rate of 8.6 percent, 11 Federal Transit Administration, National Transit Summaries and Trends 2019, accessed August 2, 2022. (weblink: https:// www.transit.dot.gov/funding/grants/urbanized–area–formula– grants–5307). which is a weighted average based on county–level output, with 3.94 percent 12 going towards state sales tax and 4.67 percent13 going towards local sales tax. From 2023 to 2050, staff estimated the cost to lo - cal governments due to the Proposed Regulation to be $515 million, resulting from locomotives operated by local governments.

Local governments will also see a direct increase in utility user and local sales tax rev - enue of $220 million and a decrease in sales tax from diesel fuel of $490 million. Staff estimated the total fiscal cost to local governments to be $1.0 billion from 2023 to 2050. Cost or Savings in Federal Funding to the State: The Proposed Regulation would have a small fiscal impact to federal government agencies that provide funding for state and local locomotives, relative to the total estimated cost of the Proposed Regulation.

The cost to the federal government is estimated to be ap - proximately $362 million from 2023 to 2050. HOUSING COSTS (Gov. Code, § 11346.5, subdivision (a)(12)) The Executive Officer has also made the initial de - termination that the proposed regulatory action will not have a significant effect on housing costs. SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING BUSINESS, INCLUDING ABILITY TO COMPETE (Gov.

Code, §§ 11346.3, subdivision (a), 11346.5, subdivision (a)(7), 11346.5, subdivision (a)(8)) The Executive Officer has made an initial determi - nation that the proposed regulatory action would not have a significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states, or on representative private persons. 12 C a l i f o rni a D ep artm e n t o f T ax an d F e e A dmini s tra ti o n , D e- tailed Description of the Sales & Use Tax Rate, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sut– rates–description.htm ). 13 California Department of T ax and Fee Administration, Cali - fornia City & County Sales & Use Tax Rates, accessed August 2, 2022. (weblink: https://www.cdtfa.ca.gov/taxes–and–fees/sales– use–tax–rates.htm ).

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1095 RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT (Gov. Code, § 11346.5, subdivision (a)(10)) Major Regulation: Statement of the Results of the Standardized Regulatory Impact Analysis (SRIA) (Gov. Code, § 11346.3, subdivision (c)): 11346.3(c)

(1) Each state agency proposing to adopt, amend, or repeal a major regulation on or after No - vember 1, 2013, and that has prepared a standardized regulatory impact assessment (SRIA) in the manner prescribed by the Department of Finance pursuant to

section 11346.36. The standardized regulatory impact analysis shall address all of the following: (

A) The creation or elimination of jobs within the state. The Proposed Regulation is estimated to result in a decrease in employment growth in California most years of the assessment. These changes in employment represent less than 0.01 percent of baseline California employment in 2025, grow to represent a decrease of 0.05 percent of baseline California employment in 2035, and diminishes to be approximately 0.01 percent of baseline California employment by 2050.

The pat - terns of decreasing employment growth closely track the annual costs of the Proposed Regulation as the di - rect impacts of the Proposed Regulation more broad - ly impact businesses and individuals in California. In 2023, 2024 and 2025, the modeled results show an increase in employment. This is primarily associated with an increase in revenue from the sale and scrap - page of locomotives and the associated decrease in maintenance costs in those years.

The rail transportation industry in California bears the greatest direct cost of the Proposed Regulation and is also estimated to see the greatest impact to employ- ment growth. The Proposed Regulation would result in a decrease in employment growth in 2025 of 8 jobs, a decrease in employment growth in 2040 of 249 jobs, and a decrease in employment growth in 2050 of 64 jobs; a decrease of about two percent in the years of greatest impact. (

B) The creation of new businesses or the elimination of existing businesses within the state. The Proposed Regulation does not directly result in business creation or elimination and the Regional Eco- nomic Models, Inc. (REMI) model cannot directly es- timate the creation or elimination of businesses. How- ever, based on the modeling of changes in output and employment, businesses involved in the manufacture and installation of hydrogen infrastructure, as well as hydrogen manufacturing, may see expansions in busi- ness.

To the degree that any California businesses are involved in the manufacture of new locomotives, these businesses may also expand to meet demands. The greatest impacts to output and employment could oc - cur in the rail transportation industry. A large portion of the costs will be borne by Class I operators. The Class I operators are large national corporations and are not anticipated to experience business elimination because of the Proposed Regulation.

While changes in jobs for the California economy cannot directly estimate the broader impacts of busi - ness creation and elimination, job changes can be used to understand some of the potential impacts to busi - nesses. The overall job impacts of the Proposed Reg - ulation are small relative to the total California econ - omy. The changes in statewide employment represent, at most, a 0.05 percent change relative to baseline Cal- ifornia employment in any given year. (

C) The competitive advantages or disadvantages for businesses currently doing business within the state. There could be indirect competitive disadvantag - es to California businesses that depend primarily on rail transport. California producers and their products compete with producers and products from other states and nations. The extent and nature of that competition depends on commodity type. For example, some Cal - ifornia products are differentiated by source or brand, such as Napa Valley wines, California raisins, or Tesla autos.

Since customers may not see wines, raisins, or autos from elsewhere as perfect substitutes, differenti- ated products can often command a somewhat higher price and have a greater ability to absorb transporta - tion cost differences without losing market share. Oth- er California products dominate their industry due to production volume and are somewhat shielded from competition because other sources cannot satisfy the market demand. However, California products that are not differentiated by source or brand must compete on delivered price and reliability of supply.

Some Califor- nia businesses may therefore face increased competi - tion to the extent that their product prices are affected by increased shipping costs associated with the Pro - posed Regulation. (

D) The increase or decrease of investment in the state. Gross domestic private investment consists of pur - chases of residential and nonresidential structures and of equipment and software by private businesses and nonprofit institutions. It is used as a proxy for im- pacts on investments in California because it provides an indicator of the future productive capacity of the economy. Under the Proposed Regulation, private investment is anticipated to decrease by $7 million in 2025, de - crease by $673 million in 2040, and decrease by $96 million in 2050. These impacts to private investment range between a decrease of less than 0.01 percent to a decrease of about 0.11 percent.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1096 (

E) The incentives for innovation in products, mate - rials, or processes. The Proposed Regulation would initiate the transi - tion to ZE for locomotives operating in California. In the short term, locomotive switchers (Class I, Class III, and industrial) provide a unique opportunity to ac- celerate the deployment of ZE technology in the off– road sector. Unlike line haul locomotives, which may travel throughout the country and return to a base only for periodic maintenance, switchers are generally used for railyard operations or local and regional delivery, returning to a railyard or home base each night.

Due to their daily operational characteristics and the oper - ating range of current ZE technologies, switchers are well suited for ZE pilots in California. Passenger op - erators are also beginning to implement ZE technol - ogy and are expected to have access to commercially available ZE locomotives by 2030 (see Locomotive Technology Feasibility Assessment within the ISOR for further details). Even with line haul locomotives, Union Pacific and BNSF Railway have committed to integrating ZE technology.

As use of ZE technologies expands, technical capabilities will improve, and they are expected to operate comparably with diesel tech - nology. Additionally, as ZE switchers are increasingly adopted, industry acceptance of advanced technolo - gies is improving. The current state of ZE locomotive technology is expected to progress and expand into extended range applications, as well as other off–road sectors. Additionally, the Proposed Regulation would in - crease the installation of electric charging and hydro - gen fueling infrastructure needed to support the use of ZE locomotives.

Currently, ZE technologies are un- derutilized due, in part, to limited access to supporting infrastructure at facilities where locomotives operate. Installations of electric charging and hydrogen fueling infrastructure will support the use of these technolo - gies, as well as other advanced technology equipment and vehicles. (

F) The benefits of the regulations, including, but not limited to, benefits to the health, safety, and wel - fare of California residents, worker safety, and the state’s environment and quality of life, among any other benefits identified by the agency. The Proposed Regulation is designed to reduce toxic air contaminant, criteria pollutant, and GHG emissions by transitioning old, highly polluting locomotives to the cleanest diesel–powered locomotives available and ZE locomotives.

Cumulatively, from 2023 to 2050, the Proposed Regulation is expected to reduce statewide locomotive emissions by approximately 7,450 tons of PM2.5 and 389,600 tons of NOx relative to the base - line. The total statewide valuation of avoided health outcomes from 2023 to 2050 is approximately $31.96 billion. The cost–savings associated with reduced fuel and maintenance costs as well as sold and salvaged locomotives to all locomotive operators is about $11.4 billion. The operator cost–savings are in part offset by about $1.8 billion in lost tax and fee revenue at the state and local governments. (

G) Department of Finance Comments and Responses. Department of Finance (DOF) comment (1): “…the SRIA assumes that railroads will replace their entire fleets and continue their current practice of sending any available long–haul locomotives to California. However, the SRIA also estimates that the required hydrogen locomotives would cost about 70 percent more than diesel locomotives and that operators will spend more on hydrogen fuel than on diesel fuel, so railroads may have an incentive to replace only the locomotives that run in California and to continue running diesel locomotives in other states.

The SRIA should include a sensitivity analysis to show how im - pacts may vary under different compliance scenarios or provide justification for the current assumption.” CARB Response : CARB agrees it is probable that California Class I locomotive operators would not replace their entire national line haul fleet to comply with the Proposed Regulation.

Absent more granular data specific to Union Pacific and BNSF Railway op - erations, staff utilized trends observed from annually reported data collected by the 1998 Memorandum of Mutual Understanding and Agreements (MOU), South Coast Locomotive Fleet Average Emissions Program (98MOU). The 98MOU data suggests that Class I lo - comotive operators prioritized cleaner locomotives in the South Coast Air Basin (SCAB) in the early years of the agreement.

Once enough early reduction credits were obtained to achieve the minimum fleet average emissions, the Class I locomotive operators stopped being selective about the SCAB locomotive fleet. From 2010 through 2012, 65 percent of SCAB loco - motive activity was done with Tier 2/2+ and cleaner locomotives, with Tier 1/1 + and dirtier locomotives accounting for around 30 percent. By 2017, Tier 1/1+ and dirtier locomotives accounted for 43 percent of Class I SCAB activities and have since remained close to that level.

This shows that operators have switched from prioritizing certain locomotives for use in Cali - fornia to dispatching locomotives without considering emission levels when possible. Absent Class I input that could inform the fleet operational characteristics, staff provided analysis on both situations. The SRIA provides separate modeling outputs for a California specific fleet and a national fleet turnover. The Proposed Regulation and alternatives reflect the cost to California, to provide values for comparison to the California specific health benefits presented.

Since operations in California represent ten percent of Class I national operations, operators could either send the

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1097 ten percent of their fleet with the cleanest emissions, similar to their early actions under the 98MOU, or could send locomotives without consideration of their emissions, similar to their current actions. Either way, the cost to California is the same and is based on ten percent of their national operations used to calculate California benefits. Staff separately provided a sensi - tivity analysis of the national costs if Class I opera - tors chose to turn over 100 percent of their line haul locomotives.

Also, the Proposed Regulation does not require hy- drogen locomotives and is neutral to the technology that achieves ZE or a hybrid ZE–capable locomotive. Using currently available technology as a guide, staff assumes hydrogen fuel cell locomotives to be the current preferred ZE locomotive option for line haul locomotives; however, this may change during the span of the Proposed Regulation based on technology advancements. The SRIA currently assumes yard switchers and road switchers operated by Class I, Class III, and in - dustrial operators will eventually transition to battery- electric ZE locomotives.

Class I line haul and passen - ger locomotives are presumed to use hydrogen fuel cell locomotives due to their increased operational range needs. In 2016, CARB published a report analyzing economic impacts of operating locomotive exchange points outside California to swap out battery–electric ZE locomotives with diesel locomotives. The report concluded that operation of exchange points would cause delays that may lead to mode shift to trucks, and railroads could lose approximately $1.1 billion in revenue.

Hydrogen fuel cell locomotives can meet Class I line haul operational needs better than battery– electric locomotives without locomotive exchange points due to their longer range. As mentioned previ - ously, it is possible Class I operators could choose to have a designated California fleet of cleaner locomo - tives and continue to use diesel elsewhere. However, discussions with Class I operators have not indicated whether this was a viable option.

Additionally, CARB could not determine what the California fleet would be comprised of, whether battery–electric or hydro - gen, and thus absent input from Class I operators more analysis is not likely to yield an improved impact assessment. DOF comment (2) : “The SRIA assumes that incidence–per–ton factors calculated for the period from 2014 to 2016 will hold in the future, while it may be that additional years of data might change these factors and/or causal relationships and hence change the estimated benefits.

The SRIA should explain why the period from 2014 to 2016 was used or update the analysis with additional years of data.” CARB Response: The SRIA uses the most updated incidence–per–ton (IPT) factors available to estimate future health benefits. CARB will be updating the IPT factors and underlying data in the future, but addition- al analyses are needed to ensure that the IPT factors for human–made sources of air pollution are not af - fected by events such as the occurrence of high wild - fire seasons after 2016.

There is a strong body of epi - demiological research supporting the causal and likely causal relationships between PM2.5 exposure and the adverse health outcomes CARB evaluated, and this research has grown over the years. Additionally, re - cent studies continue to show that exposures to even low PM2.5 concentrations, below the levels of current air quality standards, can lead to adverse health out - comes. Therefore, the causal and likely causal rela - tionships reflect the most recent science. DOF comment (3): “The SRIA evaluates cancer risk impacts for only the population living within a mile of a railyard.

As moving from just inside the 1–mile ra - dius to just outside may not eliminate the cancer risk, the SRIA should include a sensitivity analysis to show how health benefits may vary for different proximities or explain why the 1–mile rule is the best approxima - tion to evaluate changes in cancer risk from reduced locomotive emissions.” CARB Response : Between 2007 and 2009, CARB conducted railyard health risk assessments (HRA) for 17 major railyards in California.

The railyard HRAs showed that the diesel PM (DPM) emission from lo - comotives operating within a railyard resulted in ele - vated cancer risks in the communities adjacent to the railyards, and beyond. The HRAs also indicated that the zone of impact can extend to an area of several miles from the boundary of the railyard. DPM has been identified as a toxic air contaminant by CARB and there is no acceptable level of exposure for all communities either adjacent to or around the railyards. For the Proposed Regulation, staff updated the 2007–2009 HRAs.

The updated Health Risk Charac - terization (HRC) averaged the cancer risk, with a re - gion extending out one mile from the railyard bound - ary as a reference area to evaluate the relative reduc - tion in cancer risk that would result from the Proposed Regulation. Staff further broke down the one–mile area into bands of 0–0.25, 0.25–0.5, and 0.5–1.0 miles, and the estimated average cancer risks within these ar- eas. The results showed a strong association between the cancer risk level and the distance from emission sources, which is consistent with the findings of pre - vious HRAs.

As presented in the HRC, the locomotive DPM emis- sion reductions from the Proposed Regulation indicate that there would be substantial reductions of health impacts within communities near railyards. The resi - dents exposed to the elevated cancer risks within areas beyond one–mile from the railyard boundaries would also have similar risk reductions from the Proposed

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1098 Regulation. Using the one–mile boundary to show that cancer risk from DPM emitted by locomotives di- rectly correlates with the distance from the emission source, means that additional analysis of boundaries beyond one mile was not necessary for the Proposed Regulation. BUSINESS REPORT (Gov.

Code, §§ 11346.5, subdivision (a)(11); 11346.3, subdivision (d)) In accordance with Government Code sections 11346.5, subdivisions (a)(11) and 11346.3, subdivision (d), the Executive Officer finds the reporting require - ments of the proposed regulatory action which apply to businesses are necessary for the health, safety, and welfare of the people of the State of California. COST IMPACTS ON REPRESENTATIVE PRIVATE PERSONS OR BUSINESSES (Gov.

Code, § 11346.5, subdivision (a)(9)) In developing this regulatory proposal, staff evalu - ated the potential economic impacts on representative private persons or businesses. The total direct cost for locomotive operators to comply with the Proposed Regulation is estimated to be approximately $23.4 bil- lion from 2023 to 2050. These costs include all capital, maintenance, fuel, administrative, and opportunity costs and savings incurred by all parties. The estimat - ed cost savings from 2023 to 2050 is $10.9 billion.

The total net cost of the Proposed Regulation from 2023 to 2050 is estimated to be $13.8 billion, which is less than the approximate $31.9 billion in expected monetized health benefits. The Proposed Regulation could result in indirect costs to individuals to the extent that affected busi - nesses pass compliance costs through to consumers. If the total direct cost of the Proposed Regulation is fully passed through to consumers, the cost per California household from total impact of the Proposed Regula - tion from 2023 to 2050 is estimated to be an average of $58 per household yearly.

Passenger locomotive operators that incur increased costs after pursuing local, state, and federal funding may decide to pass on costs to individuals, through changes in service or fares. However, government grant funding could reduce or eliminate the additional capital costs of the Proposed Regulation. To the extent that passenger locomotive operators are successful in offsetting the upfront incremental costs, fares could be unaffected for individuals and could lead to potential fare reductions in later years due to operational cost savings.

However, CARB calculated the cost to indi - viduals if fares could not be offset with government funding. The hypothetical impact to fares if passenger operators passed through 100 percent of their costs to riders would be local passenger fares could increase by approximately 39 cents and state passenger fares could increase by $2.27 on average, assuming 1.5 per- cent growth in ridership year–over–year. EFFECT ON SMALL BUSINESS (Cal. Code Regs., title 1, § 4, subdivisions (

a) and (b)) The Executive Officer has also determined under California Code of Regulations, title 1,

section 4, that the proposed regulatory action would affect small businesses. To identify small businesses and model their estimated costs of compliance with the Proposed Regulation, staff reviewed locomotive populations and fuel usage for Class III and industrial locomotive operators. Among the locomotive operators reviewed, staff identified that those with an average annual revenue over $5 million have 7 or more locomotives and are already buying new locomotives using their revenue and, in some cases, grants.

Small businesses (companies with less than $5 million in revenue per year) rarely, if ever, purchase new locomotives. They primarily operate pre–Tier 0 engines which have the highest emissions and therefore would also incur the highest Spending Account funding requirements. The cost for small businesses to comply with the Proposed Regulation from 2023 to 2050, ranges from approximately $25,000 to $1,262,000. At maximum, this is approximately 97 percent of small businesses annual revenue.

Recognizing that the Proposed Reg - ulation requirements may challenge some small busi - nesses, especially those operating Pre–Tier 0 locomo- tives, staff has included a Small Business Hardship Extension provision in the Proposed Regulation. For more information on this provision see Appendix A of the ISOR. CONSIDERATION OF ALTERNATIVES (Gov.

Code, § 11346.5, subdivision (a)(13)) Before taking final action on the proposed regula - tory action, the Board must determine that no reason - able alternative considered by the Board, or that has otherwise been identified and brought to the attention of the Board, would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost–effective to affected private persons and equally effective in implementing the statutory policy or other provisions of law.

Staff considered five alternatives to the Proposed Regulation. As explained in

section IX of the ISOR, no alternative proposal was found to be less burden -

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1099 some and equally effective in achieving the purposes of the Proposed Regulation in a manner that ensures full compliance with the authorizing law. Staff has not identified any reasonable alternatives that would less - en any adverse impact on small business. STATE IMPLEMENTATION PLAN REVISION If adopted by CARB, CARB plans to submit the pro- posed regulatory action to the U.S. EPA for approval as a revision to the California State Implementation Plan (SIP) required by the federal Clean Air Act.

The adopted regulatory action would be submitted as a SIP revision because it adopts regulations intended to re - duce emissions of air pollutants in order to attain and maintain the National Ambient Air Quality Standards promulgated by U.S. EPA pursuant to the Clean Air Act. ENVIRONMENTAL ANALYSIS CARB, as the lead agency for the Proposed Reg - ulation, has prepared a draft environmental analysis (Draft EA) under its certified regulatory program (Cal.

Code Regs., title 17, §§ 60000 through 60008) to com- ply with the requirements of the California Environ - mental Quality Act (CEQA; Public Resources Code § 21080.5).

The Draft EA concluded implementation of the Proposed Regulation, could result in: beneficial impacts to air quality, GHG emissions and climate change; less than significant impacts to air quality, en- ergy demand, energy resources, GHG emissions, land use and planning, mineral resources, population and housing, public services, recreation, and wildfire; and potentially significant adverse impacts to aesthetics, agriculture and forest resources, air quality, biological resources, cultural resources, geology and soils, haz - ards and hazardous materials, hydrology and water quality, mineral resources, noise, transportation and traffic, tribal cultural resources, and utilities and ser - vice systems.

Beneficial impacts are related to reductions in PM, NOx, and GHG emission as well as decreased use of diesel fuel. The potentially significant and unavoid - able adverse impacts are primarily related to short– term, construction–related activities. This explains why some resource areas are identified above as hav - ing both less–than–significant impacts and potentially significant impacts.

The Draft EA, included as Appen- dix D to the ISOR, is entitled “Draft Environmental Analysis for the Proposed Regulation for In–Use Lo - comotives.” Written comments on the Draft EA will be accepted during a 45–day public review period starting on September 23, 2022, and ending at 12:00 a.m. on November 7, 2022.

SPECIAL ACCOMMODATION REQUEST Consistent with California Government Code sec - tion 7296.2, special accommodation or language needs may be provided for any of the following: ● An interpreter to be available at the hearing; ● Documents made available in an alternate format or another language; and ● A disability–related reasonable accommodation. To request these special accommodations or lan - guage needs, please contact the Clerks’ Office at cotb@ arb.ca.gov or (916) 322–5594 as soon as possible, but no later than ten business days before the scheduled Board hearing.

TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service. Consecuente con la sección 7296.2 del Código de Gobierno de California, una acomodación especial o necesidades lingüísticas pueden ser suministradas para cualquiera de los siguientes: ● Un intérprete que esté disponible en la audiencia; ● Documentos disponibles en un formato alterno u otro idioma; y ● Una acomodación razonable relacionados con una incapacidad.

Para solicitar estas comodidades especiales o nece - sidades de otro idioma, por favor llame a la oficina del Consejo al cotb@arb.ca.gov o (916) 322–5594 lo más pronto posible, pero no menos de 10 días de trabajo an- tes del día programado para la audiencia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar el 711 para el Servicio de Retransmi - sión de Mensajes de California.

AGENCY CONTACT PERSONS Inquiries concerning the substance of the proposed regulatory action may be directed to the agency repre- sentative Layla Gonzalez, Staff Air Pollution Special- ist, Freight Systems Section, at layla.gonzalez@arb. ca.gov or at (279) 208–7827 or Ajay Mangat, Manager, Freight Systems Section, at ajay.mangat@arb.ca.gov or at (279) 208–7136. AVAILABILITY OF DOCUMENTS CARB staff has prepared a Staff Report: Initial Statement of Reasons (ISOR) for the proposed regu - latory action, which includes a

summary of the eco - nomic and environmental impacts of the proposal. The report is entitled: Public Hearing to Consider the Proposed In–Use Locomotive Regulation, Staff Report: Initial Statement of Reasons. Copies of the ISOR and the full text of the proposed regulatory language may be accessed on CARB’s website listed below, on September 20, 2022. Please

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1100 contact Bradley Bechtold, Regulations Coordinator, at bradley.bechtold@arb.ca.gov or (279) 208–7266 if you need physical copies of the documents. Because of current travel, facility, and staffing restrictions, the California Air Resources Board’s offices have limited public access. Pursuant to Government Code

section 11346.5, subdivision (b), upon request to the afore - mentioned Regulations Coordinator, physical copies would be obtained from the Public Information Office, California Air Resources Board, 1001 I Street, Visi - tors and Environmental Services Center, First Floor, Sacramento, California, 95814. Further, the agency representative to whom nonsub- stantive inquiries concerning the proposed adminis - trative action may be directed is Bradley Bechtold, Regulations Coordinator, (279) 208–7266.

The Board staff has compiled a record for this rulemaking action, which includes all the information upon which the pro- posal is based. This material is available for inspection upon request to the contact persons. HEARING PROCEDURES The public hearing will be conducted in accordance with the California Administrative Procedure Act, Government Code, title 2, division 3,

part 1,

chapter 3.5 (commencing with

section 11340).

Following the public hearing, the Board may vote on a resolution directing the Executive Officer to: make any proposed modified regulatory language that is sufficiently related to the originally proposed text that the public was adequately placed on notice and that the regulatory language as modified could result from the proposed regulatory action, and any additional sup - porting documents and information, available to the public for a period of at least 15 days; consider written comments submitted during this period; and make any further modifications as may be appropriate in light of the comments received available for further public comment.

The Board may also direct the Executive Officer to: evaluate all comments received during the public comment periods, including comments regard - ing the Draft Environmental Analysis, and prepare written responses to those comments; and present to the Board, at a subsequently scheduled public hearing, the final proposed regulatory language, staff’s written responses to comments on the Draft Environmental Analysis, along with the Final Environmental Analy - sis for action.

FINAL STATEMENT OF REASONS A VAILABILITY Upon its completion, the Final Statement of Reasons (FSOR) will be available and copies may be requested from the agency contact persons in this notice, or may be accessed on CARB’s website listed below. INTERNET ACCESS This notice, the ISOR and all subsequent regulatory documents, including the FSOR, when completed, are available on CARB’s website for this rulemaking at https://ww2.arb.ca.gov/rulemaking/2022/locomotive. TITLE 13.

AIR RESOURCES BOARD NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO THE IN–USE OFF–ROAD DIESEL–FUELED FLEETS REGULATION The California Air Resources Board (CARB or Board) will conduct a public hearing at the date and time noted below to consider approving for adop - tion the Proposed Amendments to the In–Use Off– Road Diesel–Fueled Fleets Regulation (Proposed Amendments). Date: November 17, 2022 Time: 9:00 a.m.

In–Person Location: California Air Resources Board Byron Sher Auditorium 1001 I Street, Sacramento, California 95814 Remote Option: Zoom This public meeting may continue at 8:30 a.m. on November 18, 2022. Please consult the public agenda, which will be posted ten days before the November 17, 2022, Board Meeting, for important details, including, but not limited to, the day on which this item will be considered, how to participate via Zoom, and any ap - propriate direction regarding a possible remote–only Board Meeting if needed.

WRITTEN COMMENT PERIOD AND SUBMITTAL OF COMMENTS In accordance with the Administrative Procedure Act, interested members of the public may present comments orally or in writing during the hearing and may provide comments by postal mail or by electronic submittal before the hearing. The public comment pe- riod for this regulatory action will begin on September 23, 2022. Written comments not submitted during the hearing must be submitted on or after September 23, 2022, and received no later than November 7, 2022. Comments submitted outside that comment period are considered untimely. CARB may, but is not required

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1101 to, respond to untimely comments, including those raising significant environmental issues. The Board also encourages members of the public to bring to the attention of staff in advance of the hearing any sugges- tions for modification of the proposed regulatory ac - tion.

Comments submitted in advance of the hearing must be addressed to one of the following: Postal mail: Clerks’ Office, C alifornia Air Resources Board 1001 I Street, Sacramento, California 95814 Electronic submittal: https://www.arb.ca.gov/lispub/comm/bclist.php Please note that under the California Public Records Act (Gov. Code, §§ 6 250 et seq.), your written and oral comments, attachments, and associated contact infor - mation (e.g., your address, phone, email, etc.) become part of the public record and can be released to the public upon request.

Additionally, the Board requests, but does not re - quire, that persons who submit written comments to the Board reference the title of the proposal in their comments to facilitate review. AUTHORITY AND REFERENCE This regulatory action is proposed under the au- thority granted in California Health and Safety Code, sections 39002, 39003, 39515, 39516, 39600, 39601, 39602, 39602.5, 39650, 39656, 39658, 39659, 39665, 39667, 39674, 39675, 39730.8(c), 40000, 41511, 42400, 42400.1, 42400.2, 42400.3.5, 42402, 42402.1, 42402.2, 42402.4, 42403, 43000, 43000.5, 43013, 43016, 43018, 43018.2, and 43600.

This action is proposed to im - plement, interpret, and make specific sections 39000, 39002, 39003, 39515, 39516, 39600, 39601, 39602, 39602.5, 39650, 39656, 39657, 39658, 39659, 39665, 39667, 39674, 39675, 39730.8(c), 40000, 41511, 42400, 42400.1, 42400.2, 42402.2, 43000, 43000.5, 43013, 43016, 43018, 43018.2, 43600, 43865, and 43866 of the California Health and Safety Code. INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT OVERVIEW (Gov. Code, § 11346.5, subdivision (a)(3)) Sections Affected: Proposed amendments to California Code of Regu- lations, title 13, sections 2449, 2449.1, and 2449.2.

Documents Incorporated by Reference (Cal. Code Regs., title 1, § 20, subdivision (c)(3)): The following document is incorporated in the reg - ulation by reference: ● A merican Society for Testing Materials (ASTM) International, 2021. “Standard Specification for Diesel Fuel. Designation D975–21,” August 1, 2021. Copyrighted. Background and Effect of the Proposed Regulatory Action: The purpose of the Off–Road Regulation is to re - duce diesel particulate matter (DPM), Oxides of Ni - trogen (NOx), and other criteria air pollutants from in–use off–road diesel–fueled vehicles in California (Cal.

Code Regs., title 13, § 2 449, subdivision (a).). The Off–Road Regulation addresses emissions from a wide variety of off–road diesel vehicles, ranging from small skidsteer loaders used in residential landscaping to very large mining trucks, dozers, forklifts, cranes, and excavators. These vehicles are often used in con - struction, mining, industrial operations, and other in - dustries.

The existing Off–Road Regulation (Current Regulation) requires fleets to reduce their emissions by retiring older engines and replacing the retired en - gines with newer engines, repowering older engines, or installing verified diesel emission control strategies in older engines (VDECS); and by restricting the addi- tion of older vehicles to fleets. The Current Regulation has been effective but is in need of updates as technol- ogy continues to advance and California’s air quality needs remain serious.

Despite significant improvements in California’s air quality over the past decades, major populated regions in California are still not in attainment with the fed - eral national ambient air quality standards (NAAQS) for particulate matter 2.5 1 (PM2.5) and ozone. In ad - dition to emitting PM2.5 and NOx (which is a precur- sor to ozone), off–road diesel vehicles also emit DPM, which has been identified as a toxic air contaminant (TAC) by CARB and poses a significant public health risk, especially at the local level.

Action is needed to reduce DPM at a statewide level to reduce the health risk throughout California, especially in communities that experience disproportionate burdens from expo - sure to TACs. The Draft 2022 State Strategy for the State Implementation Plan (2022 State SIP Strategy) proposes several measures to address these needs for further emissions reductions from the off–road sector, and the Proposed Amendments are identified as one such measure.

The Proposed Amendments, as identified in the Draft 2022 State SIP Strategy, are critical measures needed to achieve further emissions reductions than the Current Regulation from the off–road sector to achieve California’s clean air goals. The Proposed Amendments would reduce emissions by requir - ing fleets to phase out operation of their oldest and 1 PM2.5 is fine particulate matter that are 2.5 microns or less in diameter.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1102 highest–emitting off–road diesel vehicles, prohibiting the addition of high–emitting vehicles to a fleet, and requiring the use of R99 or R100 renewable diesel 2 in off–road diesel vehicles. Below is a list of the major changes included in the Proposed Amendments: ● P hase out the oldest and highest–emitting off– road engines (Tiers 0, 1, and 2) from operation in California. This provision will be implemented by fleet size and engine Tier; ● R estrict the addition of vehicles with Tier 3 and 4 Interim (

i) engines, which expands provisions of the Current Regulation that restrict the vehicle engine Tier that can be added to a fleet; ● R equire public works awarding bodies and prime contractors to obtain a fleet’s Certificate of Reported Compliance prior to awarding a con- tract to or hiring a fleet; ● M andate the use of R99 or R100 renewable diesel for all fleets, with some limited exceptions; ● P rovide voluntary compliance flexibility options for fleets that adopt zero–emission technology; and ● I nclude additional requirements to increase en - forceability, provide clarity, and provide addi - tional flexibility for permanent low–use vehicles.

CARB may also consider other changes to the sec - tions affected, as listed on page 2 of this notice, or oth- er sections within the scope of this notice, during the course of this rulemaking process. Existing Regulations: Standards for New Off–Road Engines CARB’s regulatory programs for new off–road die- sel engines are largely harmonized with the United States Environmental Protection Agency’s (U.S. EPA) for nonroad diesel engines. Since the mid 1990’s, emission standards adopted by U.S. EPA and CARB have required new off–road engines to become pro - gressively cleaner.

In developing the standards for new engines, staff worked closely with U.S. EPA to develop harmonized federal and California programs. The emission standards are divided into four increas - ingly stringent levels (Tiers); the allowed emission lev- el and effective dates vary by horsepower (hp). Until the mid–1990s, off–road diesel engines were not sub - ject to emission standards (commonly known as Tier 0 or “uncontrolled”). Starting in 1996, depending on engine size, the tiered standards began to be phased in.

Tier 4 standards are divided into two stages for en- gines with a maximum rated hp of 25 or greater, inter- im and final. More information on the implementation years for the off–road compression ignition engine emission standards can be found in

Chapter I the Staff Report: Initial Statement of Reasons (ISOR). 2 Fuel that is 99 percent or 100 percent renewable diesel. Objectives and Benefits of the Proposed Regulatory Action: The primary goal of the Proposed Amendments is to reduce emissions of criteria and toxic air pollutants which hurt public health, welfare, and the environ - ment in California, to meet federal and State ambient air quality standards.

An additional goal of the Pro - posed Amendments is to maintain a level playing field for compliant fleets conducting business in California and ensure that the projected emissions reductions of both the Current Regulation and the Proposed Amend- ments are achieved. The Proposed Amendments also aim to support the zero–emission goals outlined in the Governor’s Executive Order N–79–20 by provid - ing voluntary compliance pathways that offer compli- ance flexibility to participants when adopting zero– emission technology, which is critical for expanding zero–emission technology in the off–road sector.

Public Rulemaking Process for Development of the Proposed Amendments Consistent with Government Code sections 11346, subdivision (b), and 11346.45, subdivision (a), and with the Board’s long–standing practice, CARB staff held public workshops and other meetings with interested stakeholders during the development of the Proposed Amendments which were used to make the determina- tion of the proposed action.

This extensive public pro- cess began in May 2021 and included 3 virtual public workshops, 3 public workgroup meetings, and over 30 individual meetings with stakeholders upon request to gather additional information and feedback during the development of the Proposed Amendments. Staff also established the Proposed Amendments email, ordamendments@arb.ca.gov, so that the public could reach out to CARB staff at any time.

Potential Benefits of the Proposed Amendments Cumulatively, from 2024 through 2038, the Pro - posed Amendments are expected to reduce statewide emissions from off–road diesel–fueled fueled vehi - cles by approximately 31,087 tons of NOx and 2,717 tons of particulate matter (PM) beyond the reductions expected from the Current Regulation. About half of the additional NOx and PM reductions from the Pro - posed Amendments are expected to be realized within the first five years of implementation.

The additional emissions reductions from the Proposed Amendments are expected to reduce the concentration of PM in the communities in which these vehicles operate, benefit- ting both local residents and the operators of the ve - hicles alike, as well as reducing the concentration of ozone, which provides regional health benefits. These emission reductions and associated improvements in air quality would be especially beneficial in environ - mental justice communities that are frequently located in areas with increased exposure to air pollution and toxics from in–use off–road diesel vehicles.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1103 CARB staff estimated the reduction in adverse health outcomes associated with reduced emissions of PM2.5 and NOx due to the Proposed Amendments. These health outcomes include cardiopulmonary mortality, hospital admissions for cardiovascular and respiratory illnesses, and emergency room visits for asthma.

Based on the analysis, staff estimates that the total reduction in the number of cases statewide due to the implementation of the Proposed Amendments from 2024 to 2038 would be as follows: ● 5 71 fewer premature deaths (446 to 699, 95 per - cent confidence interval), ● 8 2 fewer hospital admissions for cardiovascu - lar illnesses (0 to 161, 95 percent confidence interval), ● 9 8 fewer hospital admissions for respiratory ill - nesses (23 to 173, 95 percent confidence interval), and ● 2 77 fewer emergency room visits for asthma (175 to 379, 95 percent confidence interval).

The Proposed Amendments would also reduce worker exposure to harmful air pollutants for workers that utilize in–use off–road diesel vehicles at their job. In California alone, it is estimated that 150,000 people are occupationally exposed to off–road heavy–duty diesel vehicles. This includes, but is not limited to, those people working as construction equipment op - erators, construction laborers, highway maintenance workers, and surface miners. 3 The Proposed Amend - ments will play an important role in reducing the amount of DPM and NOx emissions to which workers are exposed.

The expected results are improved work- ing conditions, fewer lost workdays, and long–term health benefits for workers. The Proposed Amendments introduce additional requirements for prime contractors and public works awarding bodies that will ensure that these enti - ties only enter into contracts with compliant fleets, therefore making it harder for noncompliant fleets to inappropriately operate in California and applying additional pressure to these fleets to come into com - pliance if they wish to contract with these entities.

These changes achieve implementation and enforce - ment benefits of maintaining a level playing field for compliant vehicles conducting business in California and reducing the monetary advantage of noncompliant fleets and vehicle owners that try to circumvent the requirements of the Off–Road Regulation. Although the Proposed Amendments would not re - quire the deployment of zero–emission technology, voluntary provisions have been included to promote 3 Jobs & Income. (2019). USAFacts.

Retrieved July 5, 2022, from https://usafacts.org/data/topics/economy/jobs–and–income/? utm_source=bing&utm_medium=cpc&utm_campaign= ND–Economy&msclkid=298c80e31a941c4490cfe2277aaed3f5. this objective. These provisions offer some compli - ance flexibility for the deployment of zero–emission off–road vehicles. The voluntary provisions sup - port increasing the population of currently available zero–emission off–road vehicles which, in turn, will improve fleet experience with these vehicles and facil- itate expansion of the technology into additional off– road vehicle categories.

Comparable Federal Regulations: Currently, there are no federal regulations that di - rectly address the same issues as CARB’s Proposed Amendments. The U.S. EPA has promulgated emis - sion standards for new off–road diesel engines, but has not promulgated federal standards for addressing emission reductions from fleets operating in–use ve - hicles with off–road (nonroad) engines. Consequently, the Proposed Amendments are not comparable to any federal regulations. An Evaluation of Inconsistency or Incompatibility with Existing State Regulations (Gov.

Code, § 11346.5, subdivision (a)(3)(D)): During the process of developing the proposed regulatory action, CARB conducted a search of any similar regulations on this topic and concluded these regulations are neither inconsistent nor incompatible with existing State regulations. Mandated by Federal Law or Regulations (Gov. Code, §§ 11346.2, subdivision (c), 11346.9) The Proposed Amendments are not identical to one or more corresponding federal regulations. DISCLOSURE REGARDING THE PROPOSED REGULATION Fiscal Impact/Local Mandate Determination Regarding the Proposed Action (Gov.

Code, § 11346.5, subdivisions (a)(5)&(6)): The determinations of the Board’s Executive Offi - cer concerning the costs or savings incurred by public agencies and private persons and businesses in reason- able compliance with the proposed regulatory action are presented below.

Under Government Code sections 11346.5, subdivi- sion (a)(5) and 11346.5, subdivision (a)(6), the Execu- tive Officer has determined that the proposed regula - tory action would create costs or savings to any State agency, would not create costs or savings in federal funding to the State, would create costs or mandate to any local agency or school district, whether or not re - imbursable by the State under Government Code, title 2, division 4,

part 7 (commencing with

section 17500), or other nondiscretionary cost or savings to State or local agencies.

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1104 Cost to any Local Agency or School District Requiring Reimbursement under

section 17500 et seq.: Pursuant to Government Code sections 11346.5, subdivision (a)(5) and 11346.5, subdivision (a)(6), the Proposed Amendments are a mandate that would cre - ate costs and cost–savings to local agencies and school districts. However, these costs to local agencies are not reimbursable by the State under Government Code, title 2, division 4,

part 7 (commencing with

section 17500). The direct costs from the Proposed Regula - tion can generally be categorized into two categories: 1) vehicles and maintenance costs and 2) contracting costs for public works awarding bodies to receive Cer- tificates of Reported Compliance from contractors. The vehicle and maintenance costs are not reimburs - able because these apply generally to all entities that own and operate affected vehicles, including local agencies.

The contracting requirements apply broadly to all prime contractors and all public works award - ing bodies that contract for a project involving the use of vehicles subject to the Off–Road Regulation, which effectively applies to most construction related contracting in the State where vehicles subject to the Off–Road Regulation are operating. Additionally, the contracting requirements do not require a higher level of service from public works awarding bodies because most agencies already require compliance with State law as a condition of getting a contract.

Therefore, the Proposed Amendments do not constitute a “Program” imposing any unique requirements on local agencies as set forth in

section 17514 of the California Govern- ment Code. Cost or Savings for State Agencies: The State government owns and operates vehicles subject to the tier phase–out and adding vehicle re - strictions of the Proposed Amendments. Using Febru- ary 2022 data from DOORS, the reporting tool for the Off–Road Regulation, CARB staff determined that the number of vehicles owned by the State government is one percent of the total number of vehicles reported.

The Proposed Amendments would require con - tracting entities, including public works awarding bodies, verify fleet compliance by obtaining and re - viewing the Certificate of Reported Compliance from all known fleets before awarding a contract and only enter into contracts with fleets compliant with the reg- ulation These requirements have administrative costs that yield direct costs on the State government.

CARB anticipates the need for additional staff (3 Air Pollution Specialists and 4 Air Resources Techni- cian II) to conduct additional enforcement, outreach, compliance assistance and maintenance of compliance assistance tools. This additional staff will have an ini- tial cost of $1.053 million in 2024 and $1.046 million in annual ongoing costs.

From 2023 through 2038, State government is esti - mated to face additional costs of approximately $46 million, savings of $13 million, an increase of revenue of $119 million, and decrease of revenue of $77 mil - lion as a result of these Proposed Amendments, if ap - proved. The vehicle and maintenance costs will not be spread across all State government agencies equally but will instead be directly related to the number of ve- hicles a State agency owns and operates and to the tier distribution of those vehicles.

Based on data reported in DOORS, the California Department of Transpor - tation owns and operates about 40 percent of all the State–owned off–road vehicles reported in DOORS and, along with the California Department of Gener - al Services, does the most public works contracting that would be subject to the Proposed Amendments.

Other agencies that will be impacted by the Proposed Amendments include, but are not limited to, the Cali - fornia Department of Forestry and Fire Protection and the California Department of Parks and Recreation, each with approximately 7 percent of reported State– owned off–road vehicles reported in DOORS, and the California Department of Fish and Wildlife, which has approximately 6 percent of reported State–owned off– road vehicles reported in DOORS. The Proposed Amendments are not anticipated to have current fiscal year (2022–2023) impacts.

The im- pacts in 2023 are anticipated to occur in the second half of 2023, subsequent to the adoption and effective date of the Proposed Amendments. Other Non–Discretionary Costs or Savings to Local Agencies: Local agencies own and operate vehicles subject to the tier phase–out and additional vehicle restric - tions of the Proposed Amendments. Almost any local agency could own and operate a vehicle subject to the Proposed Amendments, such as a forklift operating in a warehouse or other facility.

However, the local agencies that will be most impacted are those that are involved in public works, waste management and sani- tation, flood control and water agencies, parks and rec- reation districts, fire departments, and transportation agencies. The costs will not be spread across all local agencies equally but will instead be directly related to the number of vehicles a local agency owns and oper- ates and to the tier distribution of those vehicles.

Using February 2022 data from DOORS, CARB staff deter - mined that the number of off–road vehicles reported in DOORS owned by local governments to be three per - cent of the total number of vehicles reported to CARB under the Current Regulation. The Proposed Amendments require that contracting entities, including public works awarding bodies, ver- ify fleet compliance by obtaining and reviewing the Certificate of Reported Compliance from all known fleets before awarding a contract and only enter into

CALIFORNIA REGULATORY NOTICE REGISTER 2022, VOLUME NUMBER 38-Z 1105 contracts with fleets compliant with the regulation. These requirements have administrative costs that affect the direct costs on local governments. The new requirements for public works awarding bodies will be directly proportional to the number of public works projects an agency undertakes. During the de - velopment of the cost estimates for this requirement, CARB reviewed the Capital Improvement Plans of different agencies. These plans reveal a trend that entities with larger populations tend to have a larger number of public works projects.

Using population as a surrogate, CARB anticipates that agencies located in the most populous areas of the state will be most im - pacted by this requirement. CARB estimates an annu- al cost of $1.2 million associated with this provision, $18.6 million from 2023 through 2038. More details on these estimated costs can be found in

Chapter XI of the ISOR and Appendix B of the ISOR, Standardized Regulatory Impact Assessment. From 2023 through 2038, the Proposed Amend - ments, if approved, are estimated to have a total cost to local agencies of $110 million, a total cost savings of $40 million, a revenue increase of $141 million (primarily due to sales tax generated from the sales of off–road vehicles), and a revenue decrease of $91 mil- lion. The Proposed Amendments are not anticipated to have current fiscal year (2022–2023) impacts.

The impacts in 2023 are anticipated to occur in the second half of 2023 subsequent to the adoption and effective date of the Proposed Amendments. Cost or Savings in Federal Funding to the State: The Proposed Amendments are not expected to impose any costs or savings in federal funding to the State. Housing Costs (Gov. Code, § 11346.5, subdivision (a)(12)): The Executive Officer has also made the initial de - termination that the proposed regulatory action will not have a significant effect on housing costs.

CARB staff believes that it is unlikely that direct costs would be passed on to residents of new residential housing. CARB staff analyzed the potential indirect impact to new residential construction on a per unit basis based on forecasted production of new residential units and the needed units to meet California’s housing needs identified in the 2022 Statewide Housing Plan in Ap - pendix B of the ISOR, Standardized Regulatory Im - pact Assessment. Significant Statewide Adverse Economic Impact Directly Affecting Business, Including Ability to Compete (Gov.

Code, §§ 11346.3, subdivision (a), 11346.5, subdivision (a)(7), 11346.5, subdivision (a) (8)): The Executive Officer has made an initial determi - nation that the proposed regulatory action would not have a significant statewide adverse economic impact directly affecting businesses, including the ability of California businesses to compete with businesses in other states, or on representative private persons. The overall jobs and output impacts are small relative to the baseline employment for the California economy.

The largest employment and output decreases in the State are estimated to be about 0.04 percent in 2025, 2026 and 2027. Reductions in output could indicate the elimination of businesses. Conversely, increased output within an industry could signal the potential for additional business creation if existing businesses cannot accommodate all future demand. There is no threshold that identifies the creation or elimination of businesses.

The Proposed Amendments impose requirements equally on all fleets that operate off–road diesel ve - hicles in California, whether the business that owns or operates them is based in–state or out–of–state. If an out–of–state business wants to operate vehicles subject to the Off–Road Regulation, it would need to comply with all requirements of the regulation, just as an in–state business would. In addition, the work performed by these off–road diesel vehicles is bound to the job site, and requires large infrastructure in - vestments, such as mining and construction activities.

Therefore, it is unlikely the directly–impacted busi - nesses will move out of the State. More information on the potential economic impacts of the Proposed Amendments can be found in

Chapter XI of the ISOR. RESULTS OF THE ECONOMIC IMPACT ANALYSIS/ASSESSMENT (Gov. Code, § 11346.5, subdivision (a)(10)) Major Regulation: Statement of the Results of the Standardized Regulatory Impact Analysis (SRIA) (Gov. Code, § 11346.3, subdivision (c)): In May 2022, CARB submitted a SRIA to the De - partment of Finance (DOF) for its review. CARB has updated the Proposed Amendments since the original SRIA submittal. The revisions are discussed in Chap - ter XI of the ISOR. The creation or elimination of jobs within the state.

Regional Economic Models, Inc. (REMI) Policy In- sight Plus Version 2.5.0 is used to estimate the mac - roeconomic impacts of the Proposed Amendments on the California economy. The Proposed Amendments are estimated to have a marginally negative impact on statewide employment from 2023 to 2031, and then a positive impact on statewide employment from 2032 to 2038, when compared to the baseline.

The results suggest that the estimated negative employment im - pact for the initial years is primarily from increased production costs due to increases in vehicle purchase costs, maintenance costs, and contracting costs as a result of the